All Forum Posts by: Rico Castillo

Have you tried this option?

Purchase the home Subject To the existing mortgage , seller finance the difference in asking price with or without interest . 

Lets Connect ! 

I'm in Sacramento and want to help you figure this one out! 

I could structure this and possibly buy it where everyone wins 

@Rico Castillo have buyer put down 50k on a 550k purchase price taking over the existing financing subject to. The 50k can pay realtor fees and pay something to the seller. The buyer can refinance in a couple years. They just have to hope that the home appraises. 

Hey @Rico Castillo very interesting situation but sounds totally manageable - besides what the other people have mentioned above, there may be a possibility of a hard money or private lender buying out the property and selling it right back to your buyer. 

Is that something you think your buyer would entertain? More costs involved since the HML is going to expect a premium for structuring the deal like this, but just food for thought.

Good luck! 

Lets Connect ! 

I'm in Sacramento and want to help you figure this one out! 

I could structure this and possibly buy it where everyone wins 

I'm in Sacramento too and this is just the type of deal I'd like to learn about. Following.

So your guy with poor credit needs a mortgage for at least $390k ($10K for expenses) and the seller will do a subordinated carry for the $120k.

Concentrating on the mortgage, who's going to touch him for that much money? This is where the "why" of the low credit score comes in. If he's low because he got hammered with medical debt, sure. If he was a wastrel, don't bother with him: He'll be radioactive for at least 7 full years.

Go to a local bank or credit union. Preferably the one he already has an account at.

Ask them if he moves the $50,000 into a cd or money market that they can control, can they loan him the entire amount.  They should also cut 1% point or so off his rate.